Latvia's government needs to aim for a balanced budget next year, rather than a deficit, or it will damage the economy in the long-term and hurt the country's reputation among investors, the central bank said on Saturday.
In a strongly worded article in newspaper Diena, Central Bank Governor Ilmars Rimsevics contrasted Latvia's budget policy with the reaction of northern Estonia, which quickly cut spending when it understood the scope of the economic downturn.